Act to Promote the Exploration and Development of Geothermal Resources

Current incentives for geothermal service contractors are enumerated under Presidential Decree No. 1442, otherwise known as "An Act to Promote the Exploration and Development of Geothermal Resources". These are: 1. Recovery of operating expenses not exceeding 90 percent of the gross value in any year with carry-forward of unrecovered cost. 2. Service fee of up to 40 percent of the net proceeds. 3. Exemption from all taxes except income tax. 4. Exemption from payment of tariff duties and a compensatory tax on the importation of machinery, equipment, spare parts and all materials for geothermal operations. 5. Depreciation of capital equipment over a ten-year period. 6. Easy repatriation of capital investments and remittance of earnings. 7. Entry of alien technical and specialized personnel (including members of immediate family).

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